Pillar Two Administration

GloBE Registration

The Model GloBE Rules and the EU Minimum Tax Directive do not provide any requirement for taxpayers to register as being in scope of the GloBE Rules or to de-register when they fall out of scope.

However, many jurisdictions will require GloBE registration for administrative purposes.

The approach from the legislation issued to date has been inconsistent, with some including relatively detailed registration provisions and others being silent on the issue. See: GloBE Implementation: Domestic Registration Requirements

GloBE Information Return

Generally, each constituent entity located in a jurisdiction is required to file a GloBE Information Return within 15 months after the last day of the fiscal year.

The return may be filed by either the constituent entity itself or by a designated local entity on its behalf. The filing deadline is extended to 18 months after the last day of the fiscal year for the first fiscal year in which an MNE Group comes within the scope of the GloBE Rules in that jurisdiction.

A constituent entity is not required to file a GloBE Information Return if a GloBE Information Return has been filed by either:

 – the UPE that is located in a jurisdiction that has a qualifying competent authority agreement in effect with the constituent entity’s jurisdiction for the fiscal year; or

 – the designated filing entity located in a jurisdiction that has a qualifying competent authority agreement in effect with the constituent entity’s jurisdiction for the fiscal year.

The GloBE Information Return will be filed in a standard template and will generally include the following:

 – identification of the constituent entities, including their tax identification numbers (if they exist), the jurisdiction in which they are located and their status under the GloBE Rules;

 – information on the overall corporate structure of the MNE group, including the controlling interests in the constituent entities held by other constituent entities;

 – information necessary to compute the ETR for each jurisdiction and the top-up tax of each constituent entity;

 – the allocation to each jurisdiction of the IIR top-up tax and the UTPR top-up tax amount;

 – a record of any GloBE elections made; and

 – other information that is necessary to administer the GloBE Rules.

Penalties for infractions of the GloBE Rules will apply under the domestic law of the implementing jurisdictions.

On December 20, 2022, the OECD published a consultation document on the Pillar Two GloBE Information Return. The consultation ran until February 3, 2023.  For more information, see OECD Consultation on the Pillar Two GloBE Information Return.

Safe Harbours